When most of a product’s value derives from its creative input, and most people are employed in this part of the production process, then this is what the product now is. The creative is the most profitable and hence it is the most powerful part in the production process.

A distinctive feature of creative enterprises is that they thrive best in each others’ company, in places that have both a strong local identity, and are also open to the world. In the creative economy, place matters.

At every level, from the media centre in a small town to global centres like Hollywood, creative enterprises gather together in visible hot-spots which, when fully established, become self-sustaining clusters of creative activity.